Scott Alexander reviews a book attributing rising service costs to the Baumol effect, finding it convincing but raising some concerns about conflicting data and affordability issues. Longer summary

Scott Alexander reviews the book 'Why Are The Prices So D*mn High?' by economists Alex Tabarrok and Eric Helland, which attributes rising costs in services like healthcare and education to the Baumol effect. The authors argue that as productivity increases in some sectors, wages rise across all sectors, making labor-intensive services relatively more expensive. Scott finds their case convincing but raises some concerns, including data on stagnant real wages, conflicting information on professional salaries, and the apparent decrease in affordability of services like education, which the Baumol effect shouldn't cause. He seeks further clarification on these points to fully accept the Baumol effect as the primary explanation for cost disease. Shorter summary

Scott Alexander proposes a hypothetical low-cost psychiatric practice to combat medical cost disease, exploring its potential and the barriers to its implementation. Longer summary

Scott Alexander explores the idea of creating a low-cost psychiatric practice called 'Cheap-O Psychiatry' to combat cost disease in medicine. He outlines a model that would significantly reduce overhead costs through telemedicine, self-booking, and direct payment, potentially offering appointments for as low as $35. The post discusses why such practices aren't more common, speculating on factors like the shortage of doctor-entrepreneurs, the dominance of insurance in the mid-range market, and the exhausting nature of rapid patient turnover. Scott suggests that such a venture might need to be done as a political protest to demonstrate the potential for cost reduction in healthcare. Shorter summary

Scott Alexander examines how Republicans' failure to achieve smaller government despite holding power contributes to increased polarization and the election of more extreme candidates. Longer summary

Scott Alexander discusses a factor contributing to increased polarization among Republicans. He argues that despite Republican control of various levels of government, they have failed to achieve their stated goals of smaller government, fewer regulations, and a reduced welfare state. Scott presents graphs showing growth in government spending, regulations, and welfare spending over time. He suggests this failure is due to secular trends that make everything more expensive, requiring more government spending and regulation. However, Republican voters, unaware of these underlying factors, perceive this as betrayal by their elected officials. This leads to a cycle of electing increasingly extreme candidates who promise to be 'real' Republicans, resulting in hyperpartisanship and refusal to compromise. Scott notes that this is a general issue when people have unrealistic expectations, leading to rejection of existing governments in favor of extremism. Shorter summary

Scott Alexander summarizes various responses to his post on 'cost disease', presenting diverse explanations for dramatic cost increases in healthcare, education, and infrastructure. Longer summary

Scott Alexander summarizes and responds to various commentators' explanations for the 'cost disease' phenomenon he described in a previous post, where costs for healthcare, education, and infrastructure have risen dramatically over time without corresponding improvements in quality. The post presents diverse perspectives from economists, bloggers, and readers, exploring theories ranging from administrative bloat and regulatory burden to market failures and changes in societal expectations. Shorter summary

Scott Alexander examines the phenomenon of cost disease, where costs for basic services like education and healthcare have increased dramatically without corresponding improvements in quality or wages. Longer summary

Scott Alexander explores the concept of cost disease, where costs for essential services like education, healthcare, and housing have increased significantly over the past few decades without corresponding improvements in quality or wages. He presents data showing how these costs have risen much faster than inflation, while worker salaries in these fields have remained stagnant or even declined. Alexander considers various potential explanations for this phenomenon, including market failures, increased regulation, lawsuit fears, and changing risk tolerance. He argues that this cost disease is a major factor behind many current political and economic debates, and expresses concern about its impact on living standards and economic progress. Shorter summary